In the absence of actual knowledge or constructive notice derived from properly indexed instruments in the chain of title to the contrary, a title examiner may presume that an individual grantor identified in a recorded deed was mentally competent at the time of the conveyance. A deed properly executed by a guardian of the lands of the ward under an order of sale of the probate court having jurisdiction is presumed valid and shall convey the interest of the ward.
Comment 1. An attorney representing the purchaser or mortgagee in a current transaction from an incompetent individual must require and record (a) a guardian’s license to sell or convey issued by a court of competent jurisdiction; or (b) a properly executed valid durable power of attorney.
March 29, 2000 Restated the language defining “knowledge” as being actual knowledge or constructive notice derived from properly indexed instruments in the chain of title. This concept is used in the first clause of Standards 6.2, 6.3, 6.4 and 6.5.
Comment 1 – Inserted the words in a current transaction in the first line of the Comment. Inserted the words properly executed valid before “durable power of attorney”. The words “executed in proper form” were omitted from the end of the sentence.
Comment 2 – Text formerly in Comment 2 was incorporated in the body of the Standard.